COALITION POLICY

Wairarapa Age, 10 August 1935, Page 5

COALITION POLICY

MEASURES DEFENDED. SURVEY BY SIR ALEXANDER YOUNG. ADDRESS IN MUNICIPAL HALL. A brisk defence of the Coalition Government's policy during the years of depression was presented by Sir Alexander Young, Minister of Public Health, in an address in the Masterton Municipal Hall last night. The Mayor, Mr. T. Jordan presided and there were also on the platform, the Hon. A. D. McLeod, Mr. G. B. Sykes, M.P., and Mr. J. W. Card, National candidate for the Wairarapa. Sir Alexander Young was given an attentive hearing throughout. Following on Mr. Jordan's introductory remarks, Mr. Sykes stated that it was his intention to contest the Masterton seat in the National interests at the forthcoming election. He asked his supporters who had stood by him so loyally in years gone by to again do so in the interests of the people as B whole and assist him in the coming election to ‘‘keep the flag flying." (Applause). After outlining the condition of the country that led up to the establishment of the Coalition Government in 1931, when a national emergency arose, Sir Alexander Young went on to detail the steps taken by the Government to meet the position, maintaining that it had acted on right and sound lines and deserved the continued support and confidence of the people. Stating that the Coalition was formed by the Reform and United parties, he said the Labour Party was not willing to join a National Government. He considered that decision was a great mistake, as 'they had the opportunity to render a national service. Sir Alexander went on to give a comparison of tht prices of produce in 1929 and in 1931. Tn 1929 wool was selling at Is 3d per lb. and in 1931 it had dropped to 6d, a decrease of 60 per cent. Butter dropped from 160 s per cwt. to 107 s, a decrease of 33 per cent.; lamb dropped from 73s per cwt to 53s 6d, a decrease of 27 per cent, and mutton from 40s 6d per cent, to 275, a decrease of 33 per cent. The reduced prices for primary products brought about a fall in the national income of the country from £150,000,000 in 1928-29 to £98,000,000 in 1931-32 and in the following year to £90,000,000. Che total value of New Zealand production in those years decreased 34 per ieent., that of exports by 40 per cent, and imports by 50 per cent., while costs of production were still high. Interest, wages and other charges had not fallen by as much as 10 per cent. This position was reflected on farmers and all sections of the community. In addition to the great and growing increase in unemployment, there was a fall in public revenue, practically all sources of revenue in 1931 being affected. After mentioning other ways in which the position was affected Sir Alexander defended the action taken to reduce wages, stating trat it was sheer, absolute necessity that forced the Government to take that action.

Steps were taken on a national basis to increase the income from abroad, reduce costs of production and living within New Zealand and to relieve unemployment. A grave responsibility was placed on the Government at that time and he was prepared to stand by what it had done as being the right policy at the time. The members of the Government had faced up to the Ksltion and no country in the world d handled its difficulties better than New Zealand. PUBLIC FINANCES.

Passing on to refer to the public finances, Sir Alexander Young said the policy of the Government had been to aim at a balanced Budget, if possible, and to live within its income. In times of difficulties it was essential to readjust affairs, but the Government had declined to create money as advocated in some quarters, as that would have led to chaos. In expenditure the Government had effected every possible economy, and these measures had resulted in savings of nearly £10,000,000 per annum and the interest on the in-, ternal debt, by loan conversion, had been reduced by £930,000 per annum. Sir Alexander went on to outline the steps taken by the Government to lighten the interest burden on local bodies by a general reduction and by loan conversions. The saving to the Masiterton County Council, according to figures supplied by the Loans Board, was £721 per year and to the Masterton Borough Council £3,724 per year. Those were illuminating and outstanding figures and gave a good idea of the results of the Government's policy. The addition to the public debt since 1931 by the raising of loans was comparatively small, a total of £6,655,000. The total debt, as at March 31, 1934, was £302,700,000 an increase of 20 millions over the previous year, but that increase was only a temporary one and had been wiped off by the transfer of credits from London to New Zealand. To-day the Government did not owe one penny in Treasury bills and the public debt actually showed a decrease during the period in which the Coalition Government had been in office of a little over £1,000,000. Since 1931 the cost of unemployment had been £14,000,000 and this had been met almost entirely by special taxation and not hy borrowing. DECLINE IN REVENUE.

Referring to the decline in revenue the Minister said the rates of taxation had to be increased to meet the falling receipts and new taxes had to Fe imposed. Customs taxation had fallen from £7,600,000 in 1931 to £6,485.000 in 1934, but had risen again to £7,400.000 in 1935. Land tax had fallen from £1,145,000 in 1931 to £498,000 in 1934 and £492,000 in 1935. That decline was due to the abolition of the. graduated land tax. Income tax had dropped from £4,000,000 in 1931 to £2,900,000 in 1934 but had risen again to £3.790,000 in 1935. Sir Alexander drew attention to the increase in the Dominion wages bill last year by £3,600,000 and said that income other than wages had increased by £6,000,000. After referring to the huge disparity between farm costs and farm income, the Minister outlined the special steps taken by the Government to reduce the gap and referred to'the beneficial results from the Ottawa agreements, the exchange rate, and the recent mortgage legislation. The raising of the exchange rate had increased the national income by nearly £10,000,-000 per year and brought about

greater stability. The position of the dairy industry was touched upon briefly in detailing the steps taken recently to grapple with the position, and the Minister went on to state that factory production in New Zealand, as at March 31, 1934, was at a higher level than in the previous two years. The number of factories and employees had increased. In conclusion, Sir Alexander Young said he was pleased to have Mr. Sykes on the platform with him, as he was one of the members who could be depended upon in times of difficulty and crisis. He complimented Masterton on having such a courageous representative to stand up to the difficulties that had to be faced. He was also pleased to see the National candidate for Wairarapa present and the Hon. A. D. McLeod, the retiring member. Mr. McLeod had the respect of all his associates and he wished him many years of happiness in his retirement. (Applause).

On the motion of Mr. A. McDonald, Sir Alexander Young was accorded a hearty vote of thanks for his address.